The rule in one sentence
In New York, the only fee a landlord can charge you to apply for an apartment is the cost of a background and credit check, and it can’t be more than $20 or the actual cost, whichever is less. That comes from Real Property Law §238-a, which applies statewide, including NYC.
How the checker decides
- Background/credit check: illegal if it is over $20 or over the invoice cost, if you supplied a check from the past 30 days, or if the landlord won’t give you a copy and receipt. Possibly illegal if you haven’t seen the copy or invoice yet. Co-ops may charge more than $20 for these checks, but no more than the actual cost.
- Application, processing, admin, move-in or upfront amenity fees: illegal for rentals. The exception is a co-op corporation charging someone buying shares a processing fee for its managing or transfer agent.
- Holding or “good faith” deposits: possibly illegal. The law bars any other upfront payment but does not name holding deposits, so we flag them for a written explanation.
- Broker fee: illegal if the broker represents the landlord, including one who lists the apartment with the landlord’s permission (FARE Act). Legal if you hired the broker yourself.
- Security deposit: illegal above one month’s rent under GOL §7-108.
Worked example
An agent for the landlord asks a tenant applying for a $3,000 apartment to pay a $50 application fee for a credit check, a $250 admin fee and a $3,000 deposit. The tenant has not received a copy of the report yet.
| Fee | Charged | Verdict | Over the limit |
|---|---|---|---|
| Credit/background check | $50 | Illegal | $30 |
| Admin fee | $250 | Illegal | $250 |
| Security deposit | $3,000 | Legal | $0 |
| Total | $3,300 | $280 |
The check fee is $30 over the $20 cap. And with no copy of the report and receipt, the landlord cannot collect even the $20 until it provides them. If the tenant had brought a credit and background report run within the past 30 days, the entire check fee would be waived.
What to do about an illegal fee
- Ask in writing for the fee to be dropped or refunded, and cite §238-a.
- Keep evidence: the listing, texts, emails, receipts and screenshots.
- File a complaint with the New York Attorney General at ag.ny.gov/file-complaint or call (800) 771-7755.
- For a broker fee charged by the landlord’s agent, or fees not disclosed in the listing, complain to NYC’s Department of Consumer and Worker Protection; see the FARE Act guide.
Edge cases
- Paying first month’s rent at lease signing is allowed; it is rent, not a fee.
- Late fees are a separate rule: only after rent is five days late, capped at $50 or 5% of monthly rent, whichever is less. Use the late fee checker.
- Co-op and condo purchase applications have their own costs; this tool’s co-op setting only covers the processing-fee exception.
Next steps
Total the money you legally need at signing with the NYC move-in cost calculator, check a broker fee with the FARE Act broker fee checker, and read the $20 application fee cap explained.